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6mo ago

High-Yield Savings Accounts Offer Up to 5.50% APY Amid Fed Rate Cuts

Despite recent Federal Reserve rate reductions, savers can still benefit from historically high interest rates on select savings accounts.

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Banks are still paying attractive rates so that you open and maintain money in savings accounts.

Overview

  • Top high-yield savings accounts are currently offering annual percentage yields (APYs) between 5.05% and 5.50%, the highest in over two decades.
  • Pibank leads with a 5.50% APY, closely followed by Newtek Bank at 5.25%, with several other institutions offering competitive rates.
  • These rates are a result of the Federal Reserve's aggressive rate hikes in 2022-2023 to combat inflation, though recent rate cuts are expected to gradually lower savings account returns.
  • Digital banks and online accounts often provide the best high-yield savings options, featuring no fees and minimal balance requirements.
  • Savers are advised to consider certificates of deposit (CDs) to lock in current high rates, as further Fed rate cuts are anticipated in the coming years.